“Cementing” A Smarter Strategy for AP Automation: Buzzi Unicem Goes Digital for Invoicing & Payments.
For more than 100 years Buzzi Unicem has delivered cement aggregates and other raw materials to customers around the globe. In this presentation, Buzzi shares their successful model for streamlining accounts payable with document and payment automation solutions integrated with Oracle E-Business Suite, including AP invoice capture, workflow and storage, as well as their experience with Paymode-X the industry’s largest and fastest-growing online payment network.
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Invoice and Payment Automation for Oracle EBS. Bottomline and Buzzi at COLLABORATE 10
1. “Cementing” A Smarter
“C ti ” S t
Strategy for AP Automation:
gy
Buzzi Unicem Goes Digital for Invoicing & Payments
with Oracle® E Business Suite
E-Business
Michael Parker Chris Luoma
Buzzi Unicem Bottomline Technologies
VP Information Systems Director, Product Marketing
2. Agenda
• Introductions
• Buzzi Unicem – AP Invoice Challenges
• AP Automation Implementation Process
• Lessons L
L Learned
d
• AP Automation Benefits
• Q&A
3. It’s Still a Paper-Based World
“95% of AP departments said they are still receiving the
majority of their invoices as paper via the mail ”
paper, mail.
Source: IAPP AP Automation Study, 2009
5. Eliminate “P i ” Th Automation
Eli i t “Pain” Thru A t ti
Supply Chain
Collaborative
• 100% e-Invoices
• Order-to-Pay
Automated
• Auto Matching • International Payments
• Rules Based Approval • SWIFT TSU
Workflow
• Supplier Self-Service
Manual • Front End Imaging • Dispute Resolution
• Supplier On-boarding
• Centralized AP • OCR & Key From Image • Exception Routing
• Ad-Hoc Discounts
• Hand-Written Checks • Document Preparation • Electronic invoices
and Routing • Supply Chain Finance
• Scan & Archive • Data capture as a
• Check Printing managed service • ePayments
• Manual Retrieval
• Electronic Payments • Remittance presentment • Cash Management
• Manual Approval
6. Transform AP: Integrated Invoice Processing
CODE & APPROVE
VALIDATE & MATCH
CAPTURE AUDIT HISTORY
AND REPORTING
SEARCH AND RETRIEVE
7. Business Overview
Headquarters - Bethlehem PA
Bethlehem,
5th Largest cement producer in USA
~8.7M tons per year
Wholly-owned by Buzzi Unicem SpA located in Casale, Italy (8th largest cement
producer in the world)
Created in 2004 by RC Cement Company and Lone Star Cement merger
8 Production Plants
29 Distribution Terminals
7 Sales Offices
2 Ready Mix companies
1,600 Employees
9. Buzzi Unicem USA: Core System
Landscape
p
• Oracle e-Business Suite 11.5.10
• Financials
• GL/ AR/ AP/ FA
• HR/Payroll
• Order Management
• eAM
• Maintenance Planning
• Purchasing
• Inventory
• Projects
10. Buzzi Unicem USA: Complementary
System Landscape
y p
• Bottomline Technologies
– DesignStudio
– Custom Forms for Oracle applications
– e.ComIntegrate
g
– Integration between Optio and Oracle
– e.ComPresent
– D
Document St
t Storage
• SER Capture
– Document scanning
11. Accounts Payable Challenges
• Pre-AP Automation
– Distributed invoice receipt process
• Terminal and Sales offices locations
– Managers code and approve invoices by hand
– Mail to AP Department in Indianapolis or Bethlehem for data
entry
– Scanning for permanent recordkeeping
• Plant locations
– Managers code and approve invoices
– AP Clerks enter into Oracle
– Paper copy filed for recordkeeping
– Regional Check Printing
• Checks processed at either Bethlehem or Indianapolis
p p
locations
12. Accounts Payable Challenges
• Issues
– Lost Discounts
• Time delay from receipt at terminal locations to entry into
Oracle
– Lost Invoices
– C di errors
Coding
• Handwriting illegible
– Duplicate invoices received
• Managers faxed and mailed documents to AP
– Incomplete support and documentation
– No central repository for invoices
13. AP Automation Objectives
• Reduce invoice-to-payment cycle
– Improve discounts taken
• I
Improve AP throughput
h h
– Reduction in keypunching using OCR
– Reduction in coding errors
g
– Elimination of “lost invoices”
• Central repository of all invoices
– Easy retrieval from within Oracle
• Electronic settlement using Paymode-X™ network
– Reduce check printing
14. Transform™ AP for Oracle + Paymode-X:
Complete Order-to-Pay Automation
15. Transform™ AP from Bottomline:
AP Automation Attributes
• OCR Scanning (Optical character recognition)
– Pattern developed for repetitive invoices
• Reduction in keypunching
• GL code filled by pattern
• Front end routing
Front-end
– Routing to manager based on…
• Pattern
• Location – zip code
• GL cost center
16. Transform AP Attributes - cont.
• Invoice Approvals
– Approval based on user dollar limits
– Workflow routing to next approver
• Embedded Image Preview
– See both the document and the coding screen at
the same time
18. Transform AP Attributes - cont.
• Real-time Oracle interface
– GL Auto filtering
g
• Coder can select only valid GL code combinations
– Suppliers / Sites
• C d presented with valid vendors and vendor sites
Coder t d ith lid d d d it
– PO by supplier
• Open POs with received lines
– Projects
• Open projects and tasks
19. Transform AP Project Plan
• Phase I
– Non-PO Invoices
• 29 distribution terminals
– Invoices scanned centrally in Indianapolis
– Routed to Terminal Managers for review, coding and
g g
approval
– Invoices above limit routed to next level manager
– Patterns established for repetitive invoices
– Approved invoices moved to Oracle interface table
• General & Administrative expenses
– R t d t cost center managers for approval
Routed to t t f l
– Oracle projects related costs
20. Transform AP Project Plan
• Phase II
– Purchase Order-Based Invoices
• 8 manufacturing plants
– Invoices scanned centrally
– Invoice matched to received PO lines
– If invoice matches, moved to Oracle
– Miscellaneous charge screen for freight, tax
• 2 Ready Mix Companies
21. Transform AP Deployment
• Terminal locations
– Manager Logistics - Project Manager
g g j g
• “Train the trainer” approach
• All sites active in 90 days
• G
General & Administrative expenses
l Ad i i t ti
– Bethlehem Headquarters
• Cost Center Managers
– Legal
– Insurance
– IT
22. Transform AP Deployment
• Ready Mix Companies
– Low volume
– Limited number of users
• Plant Locations
– Plant by plant rollout
– High volume / many users
• 1st live site in April 2010
• Targeted completion by December 2010
23. Transform AP: Obstacles and Issues
• Scanning
– Operator issues
p
• Duplicate invoices
• Multiple page invoices – Page breaks
• Document alignment
• Lack of technical understanding of the system
– OCR Patterns
• Requires precision setting the pattern
• Requires quality invoices
24. Transform AP: Obstacles and Issues
• Repository for invoices
– Transform AP documents stored in Presenter
• Access in Oracle through “Attachment”
– Other scanned documents in e.ComPresent
• A
Access i O l th
in Oracle through “Z
h “Zoom B tt ”
Button”
• End user historical searches
– Has invoiced been entered or approved?
– Has invoice been paid?
25. Results
• Reduced invoice-to-payment cycle
– Average payment days reduced
– Reduction in discounts lost
• February 2010 – 0 discounts lost
• Improved AP throughput
– OCR recognition for routing - 60%
• Central repository of all invoices
– All invoices are scanned and stored digitally
• Electronic Settlement using Paymode-X network
– 45% of vendors being paid through Paymode X initiated ACH
Paymode-X
26. Lessons Learned
• Accounts Payable clerks need to become
analysts
• Users need more training in order to use
search capabilities
27. Future Plans
• Complete roll-out to all sites
• Upgrade document storage to Transform
Content Center
– Single storage location for all documents
• Link Oracle payment detail to Transform
• Continue to enroll vendors in Paymode X
Paymode-X
network
28. Pay Smarter with the Largest &
Fastest-Growing Electronic Payment Network
g y
• Multiple payment types & unlimited remittance detail sent through
an easy-to-use online portal
• The most fraud-proof electronic payment solution on the market
• Integrates with existing financial systems, works with any bank
• Any payment file type accepted
• Over 95,000 network members and growing
O 9 000 k b d i
• Supplier adoption rates of as much as 70%, vs. only 5-7% for
competitors
• Over $300 billion in spend processed
• Supplier on-boarding and authentication support from Bottomline
• Software-as-a-Service Delivery Model means no upgrade fees or
hardware to install
29. Bottomline Solution Overview
Purchase
P h Order Invoice Bill Lading Inspection
I ti Invoice Invoice Cash
Order Confirmed Sent/Arrival Way Bill Certificate Approved Paid Received
Suppliers /
Bank(s) Employees
Payments Invoices
IN IN
Customers AR AP
Invoices Payments Bank(s)
OUT OUT
Solutions
Transform™ Output Transform ™ Process Center Transform™ AP
Center C-Series™ Paymode-X™
Bottomline Active
Spreadsheet Server™
30. Getting Payback from AP
Working Capital Savings
Capture 100% of available discounts
Eliminate late fees
Improve Supplier Relations
Realize Greater Cash Visibility
Improve Processes
Reduce Paper
32. Thank You!
For more information, please contact:
Michael Parker
michael.parker@buzziunicemusa.com
Chris Luoma
cluoma@bottomline.com
Learn More Online:
www.bottomline.com/transformap
b tt li /t f
Stay Connected!
Twitter: http://twitter.com/bottomlinetech
LinkedIn: http://www.linkedin.com/in/chrisluoma